ZURICH, Nov 4 — Credit Suisse, which has been rocked by a series of costly scandals, presented reorganisation plans today that will dramatically pare back its investment bank activities and refocus on wealth management.
The three-year plan aims to simplify Credit Suisse’s structure, with just four main divisions and the main emphasis on helping rich and super-rich clients manage their wealth. The new plan will see Credit Suisse boost its wealth management division with a US$3-billion injection and with some 500 additional counsellors for its wealthy clients.At the same time, it said it planned to close the hedge fund services portion of its investment bank business, which was rocked by the implosion in March of the US hedge fund Archegos that cost the bank some US$5.5 billion.
“With this strategic review, we have determined a clear and compelling way forward, building on existing strengths and accelerating growth in key strategic business areas,” Credit Suisse chief executive Thomas Gottstein said in the statement.Following the news, the bank saw its share price rise 0.75 per cent in late-morning trading on the Swiss stock exchange to 9.97 Swiss francs a pop, as the main SMI index rose 0.73 per cent.
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